Summary
PepsiCo, Inc. (PEP) filed an 8-K on October 21, 2014, to report on the offering of its Senior Notes. The company announced the issuance of $500 million in aggregate principal amount of 4.250% Senior Notes due 2044, priced at 99.865% of their principal amount. Following underwriting discounts and expenses, PepsiCo received net proceeds of approximately $495 million. These proceeds are designated for general corporate purposes, including the repayment of commercial paper. This offering was conducted under PepsiCo's existing shelf registration statement and involved a prospectus supplement filed on October 17, 2014. The notes were issued on October 22, 2014, bearing a fixed interest rate of 4.250% and maturing in 2044. The notes are unsecured and rank equally with other senior unsecured indebtedness of PepsiCo.
Key Highlights
- 1PepsiCo issued $500 million in 4.250% Senior Notes due October 22, 2044.
- 2Net proceeds from the offering amounted to approximately $495 million.
- 3The proceeds will be used for general corporate purposes, including repaying commercial paper.
- 4The offering was made under PepsiCo's existing shelf registration statement on Form S-3.
- 5The notes bear a fixed interest rate of 4.250% per annum, with semi-annual interest payments.
- 6PepsiCo retains the option to redeem the notes under specific conditions prior to maturity.
- 7The notes are unsecured and rank pari passu with other senior unsecured indebtedness.